FINA 405 Investments

Stock Options Worksheet

Identify the stock and its ticker symbol that you are using in this assignment. Provide its last traded price.

Company Name	Ticker Symbol	Last Traded Price
Ford Motor Company	F	14.08

Obtain one of each for Call Option quotes and Put Option quotes. The TWO quotes must meet the following two criteria:

The strike price is approximately equal to the stocks last traded price you wrote down earlier on your note paper.

The expiry date is in three to six weeks.

Call Option

Expiry (Month/Year) 12/2022
Strike	Symbol	Last	Open Interest
14.00	F221223C00014000	0.63	0

Put Option

Expiry (Month/Year) 12/2022
Strike	Symbol	Last	Open Interest
14.00	F221223P00014000	0.51	0

Answer the following questions:

What are the intrinsic values of each option?

What are the option time values of each option?

Assume each options contract size is 100 hundred shares. Given the holdings of this stock in your individual portfolio, describe an option strategy utilizing calls. Discuss the costs incurred and possible benefits of such a strategy.